Governance Factor; Beyond the Board
Corporate governance has long been a focal point for large corporates, listed companies and regulated entities, with numerous studies connecting good corporate governance with higher profitability. However, as the March 2021 effective date of the EU’s Sustainability-Related Disclosure Regulation approaches, corporate governance is becoming increasingly important to companies of all sizes. This is, in part, due to investee companies needing to follow good governance practices, as a baseline, in order to be classified as a “sustainable investment.”
Corporate governance is not only facing increased scrutiny by investors and stakeholders but also regularly attracts adverse media attention. Directors wishing to safeguard themselves and the businesses they serve when discharging their duties should, therefore, be mindful of good corporate governance strategies and consider implementing strategies beyond the yardstick of the law.